MicroStrategy winning by breaking Street rules, avoid stock, Barron’s says

MicroStrategy’s (MSTR) market value is almost two and half times that of the company’s Bitcoins, adjusted for $7B of debt and a software business that could be worth about $1B, Andrew Bary writes in this week’s edition of Barron’s. The gap between MicroStrategy’s market value and the value of its Bitcoin holdings is at the heart of the debate about the company, which has sold stock and convertible bonds to fund its purchases. MicroStrategy has gained a huge retail following, which has contributed to the 500% gain this year in its stock to $395, the author notes. The premium, however, looks too high, and the stock is vulnerable to a pullback, especially if the post-election run-up of 45% in Bitcoin to $101,000 begins to reverse.